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In Jordan, we see some momentum in the
market for small apartments – in January of
this year alone, some 863 small apartments
were purchased, up eighteen percent on
January, 2014. However, demand for larger
apartments has fallen off significantly, by as
much as 21 percent in January 2015 versus a
year previously. Investor hesitation as prices
decrease and high levels of bureaucracy
are deterring construction companies from
pushing ahead with planned projects.
While the market continues to experience
downward pressure, we expect the real
estate sector to seem less attractive than
it has previously to potential investors.
In Qatar, we expect to see 25,000 new
residential units come onto the market in
2015, and some 100,000 by 2020. Current
projections show demand is sufficient to
absorb this level of supply – and lease
rates are likely to remain stable and
attractive to investors. It is expected that
government calls for the construction of
increased numbers of affordable homes
for low-to-middle income families will see
considerably more low cost residential
units completed over the short-term future.
Lease rates in Qatar have surged in recent
years, up by between seventy to eighty
percent between 2011 and 2014, as a result
of the increased price of land. We expect
strong demand for residential units over
the coming five years will support a further
ten percent strengthening of lease rates.
Mazaya Monthly Real Estate Report -
Week 2 - APRIL 2015